China Grabs More Gold for Reserves

The video discusses China's gradual increase in gold reserves, adding 94 tons since December, as a strategy to diversify its foreign exchange (FX) reserves away from the US dollar. This accumulation coincides with gold prices reaching $1500 per ounce, the highest since 2013. China's FX reserves slightly decreased from $3.12 trillion in June to $3.1 trillion in July, with no significant market intervention observed. Economists suggest that these reserves could be used to stabilize the yuan if necessary, although current capital flows remain balanced.

What were the FX reserves in China for July, and how did they compare to June?

What could the Bank of China potentially use to support the yuan if depreciation occurs?